2154 TEST BANK FOR EXAM 2020

2154 TEST BANK FOR EXAM 2020

Economics of Money, Banking, and Financial Markets 6e
(Mishkin)

Chapter 3: What Is Money?

3.1 Meaning of Money

1) A person's house is part of her .
A) money
B) income
C) liabilities
D) wealth
Answer: D
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

2) Money is .
A) anything that is generally accepted in payment for goods and services or in the repayment of
debt
B) a flow of earnings per unit of time
C) the total collection of pieces of property that are a store of value
D) always based on a precious metal like gold or silver
Answer: A
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

3) To an economist, is anything that is generally accepted in payment for goods and
services or in the repayment of debt.
A) wealth
B) income
C) money
D) credit
Answer: C
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

4) Currency is defined as .
A) anything accepted for payment of goods and services
B) paper money and coins
C) a unit of account
D) foreign exchange
Answer: B

,Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

5) Money is .
A) the same as currency
B) anything that is generally accepted in payment of goods or services or in the repayment of
debts
C) not used as a unit of account
D) defined as paper money and coins
Answer: B
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

6) Currency includes .
A) paper money and coins
B) paper money, coins, and cheques
C) paper money and cheques
D) paper money, coins, cheques, and savings
deposits Answer: A
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

7) There is no single precise measure of money or the money supply for economists because
.
A) the government considers money supply statistics to be confidential and refuses to publish
them
B) deciding what is generally accepted in payment for goods and services or in the repayment
of debt is difficult to determine
C) economists cannot agree if currency should be considered money
D) definitions change all the time
Answer: B
Diff: 2 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

8) Even economists have no single, precise definition of money because .
A) money supply statistics are a state secret
B) the Bank of Canada does not employ or report different measures of the money supply
C) the "moneyness" or liquidity of an asset is a matter of degree
D) economists find disagreement interesting and refuse to agree for ideological reasons
Answer: C
Diff: 2 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

,
, 9) The total collection of pieces of property that serve to store value is a person's .
A) wealth
B) income
C) money
D) credit
Answer: A
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

10) is used to make purchases while is the total collection of pieces of
property that serve to store value.
A) Money; income
B) Wealth; income
C) Income; money
D) Money; wealth
Answer: D
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

11) is a flow of earnings per unit of time.
A) Income
B) Money
C) Wealth
D) Currency
Answer: A
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is

12) An individual's annual salary is her .
A) money
B) income
C) wealth
D) liabilities
Answer: B
Diff: 1 Type: MC
Skill: Recall
Objective: 3.1 Describe what money is